In lieu of pay raises, Arcadia City Council members and city employees will see an increase in the city's contribution to their health benefits. "It is fair because in these economic times, we couldn't afford to give (employees) anything else," said Mayor Peter Amundson. The total fiscal impact will be $56,750 for all employees.
Pension reform is happening with Arcadia city employees. Arcadia City Council approved an ordinance last week whereby police officers and firefighters hired by the city are now required to pay their full employee share, or 9 percent, of their pension costs--an amount previously covered by the city. In addition, tentative agreements are in place with 4 out of 5 employee unions, to have members pay their full share by the next 3 years. Annual increases in employee costs during that period would be offset by equivalent annual raises. Other San Gabriel cities may follow suit.
127 city employees have agreed to postpone their salary increases for 6 months to help close the city's projected $2.2 million shortfall. This action would save the city $466,000.
City Council approved a 12% pay increase for City Clerk June Alford. The raise comes just as city voters are considering changing the city clerk's office from an elected one to an employee position.
After months of negotiations, the Arcadia Police Relief Association has failed to find common ground with the City Council on a contract which expired Sept. 30th. Officers want to work 3 12-hour days, like the Pasadena Police Dept. does, as well as receive a 1.5% increase for overtime, pay for being on call, and for equipment. Officers have received a 25.3% pay increase over the last 3 years.
Arcadia-based "The Vons Cos" pays reservist employees who are called up for service the difference between their company salary and the military compensation they receive.
Shortly before the city cut $400,000 in salaries and programs to help close a nearly $1 million budget shortfall, the city's managers and supervisors asked the City Council to consider giving them what they termed long-overdue raises.
City clerks often earn six figure salaries. Pasadena has the highest paid clerk in the San Gabriel Valley with an annual salary of $143,006, and 10 cities have clerks that make more than $100,000. The City Clerk is responsible for all city records and for orchestrating city elections. Arcadia's city manager Don Penman said the role of city clerk as chief record keeper is essential and the pay is justified because of the level of responsibility the position demands. Arcadia's city clerk is paid $90,870 per year.
Arcadia police and firefighters have voted to defer a portion of their salaries and health benefits to help close the city's budget shortfall. In total, employee pay and benefit deferments will free up about $300,000. The city is trying to close a $600,000 deficit this fiscal year in its $48 million general fund budget.
Local city governments in the San Gabriel Valley and Whittier are realizing the future costs of pensions and retirement benefits for their employees. The costs will be enormous and city governments need to save money for their future obligations. Arcadia's retiree medical cost is $375,062 this year and its unfunded health liabilities for current employees and retirees is $10.3 million. Unfunded health liability is the amount that would be needed to pay for all health obligations to current employees if they were to retire today, and for all retirees. Other cities' obligations are shown in a chart.
Arcadia Unified School District superintendent David Vannasdall will be paid $205,000 annually, agreed to for a 3-year contract. Vannasdall, 45, was named the district's new chief after Joel Shawn retired. Vannasdall had been deputy superintendent and previously principal of Arcadia High School from 2005 through 2012. His car allowance is $850/month, $150/month for expenses, and a $1,000 annual salary increase if he completes his doctorate degree.
The City Council has unanimously opposed 2 police proposals for 3 12-hour shifts per week and a 1.5% increase for overtime, pay for being on call, and for equipment. The contract which gave officers a 25.3% pay increase over the past 3 years expired Sept. 30th.
The salaries of city managers in the area have come under scrutiny following the city of Bell's scandal involving overpaid city officials. Bell's now-ousted city manager Robert Rizzo was earning close to $800,000. Arcadia city manager Don Penman's salary of $214,032 is shown in a chart along with other nearby city managers.
The city budget passed unanimously on Tuesday night and included the elimination of 9 full-time employee positions, an increase in paramedics fees and a one-year, 1 percent utility tax increase.
California's minimum wage increase is going to force some restaurants to hike food prices, cut back on employee hours and reduce advertising. McGrath's Fish House in Arcadia may be forced to reduce employee hours. The minimum wage is now $7.50 per hour. Another 50 cent increase goes into effect January 1, 2008.
Survival-of-the fittest strategies have swept City Hall, where employees fearful of looming budget cuts are waging campaigns against their colleagues and other departments in an effort to protect their jobs.
Arcadia Methodist Hospital workers vote to unionize. The nearly 700 technical employees, nursing assistants and other workers have voted to join the Caregiver Healthcare Employees Union (CHEU). The CHEU is a sister union to California Nurses Association. The employees want to win strong union representation, better benefits and improved conditions for employees and patients.